Ather Energy cuts IPO fresh issue size to Rs 2,626 crore

Ather Energy is set to break the two and half month lull in the primary market later this month with its much-awaited maiden public issue. The electric scooter maker filed red herring prospectus for the initial public offering with markets regulator Securities and Exchange Board of India (Sebi) on Tuesday. This will be the first IPO since Quality Power Equipments’ Rs 859 crore issue on February 18.

According to the document, Ather Energy is looking to raise Rs 2,626 crore from the fresh issue of shares, down from Rs 3,100 crore it had cited in the draft red herring prospectus for the book-built offer. The offering will also include an offer for sale, where existing investors including Tiger Global, NIIF II, 3State Ventures Internet Fund III, and IITM, along with promoters Tarun Sanjay Mehta and Swapnil Babanlal Jain will offload more than 1.1 crore shares.

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Of the net IPO proceeds, Ather will use Rs 927.2 crore for for setting up an electric two-wheeler factory in Maharashtra, Rs 40 crore for debt repayment, Rs 750 crore for investment in research and development, and Rs 300 crore for marketing initiatives. These funds will be deployed between fiscals 2026 and 2028.

Among two-wheeler manufacturers, Ola Electric Mobility, Hero MotoCorp, Bajaj Auto, TVS Motors and Eicher Motors are listed peers of Ather Energy, the RHP said.

Ather Energy IPO will open on April 28 and continue till April 30, the RHP showed. Anchor book for the offer will open on April 25. Axis Capital, HSBC Securities, JM Financial and Nomura are the book-running lead managers for the offer.

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